Hyderabad based drug maker Suven Life Sciences has turned ex-date today following the demerger scheme which was approved by its shareholders and requisite regulatory authorities as well.
As a result, Suven Life shares price tanked nearly 95% to Rs 15.95 on NSE.
Recently, the composite scheme of arrangements received approval from the National Company Law Tribunal, Bench at Hyderabad (NCLT).
The Bench passed an order allowing the Company Petition filed for sanction of the Composite Scheme of Arrangement amongst Suven Life Sciences (Demerged Company) and Suven Pharmaceuticals (Resulting Company) and their respective Shareholders and Creditors.
Upon the coming into effect of the aforesaid Scheme and in consideration of the transfer of the Contract Research & Manufacturing Services (CRAM) of Suven Life Sciences into Suven Pharmaceuticals.
Suven Pharma will issue and allot one fully paid equity shares of Rs 1 to the shareholders of Suven Life Sciences.
The US-based Suven Pharma will have more than 120 active products under abbreviated new drug applications (ANDA) development.
The company has already commercialized 121 ANDAs and the other 89 are under development.
The CRAMS business is the bread earner for the company and has grown strongly over the last three years.
Last October, Suven Life Sciences has undergone USFDA renewal inspection at their facility in Pashamylaram near Hyderabad for the manufacture and supply of active pharmaceutical ingredients (bulk drugs), intermediates and formulations under cGMP.
Suven’s Drug Discovery program is focused on discovering, developing and commercializing novel pharmaceutical products, which are first in class or best in class CNS therapies through the use of GPCR targets.
Going ahead shareholders will benefit via getting shares in the crams business which will be under Suven Pharma while Suven life Sciences will be a shell company as the majority of the company’s income and profits come from the crams vertical
Since shareholders get a mirror image of the crams business and are entitled for shares in 1:1 ratio we believe they will get benefited once the crane business gets listed separately here
The present stock is down as the majority of the company’s exuding crams business and a new NCE molecule will come under Suven Pharma which is yet to be listed soon.
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